On Monday, Jefferies began coverage on shares of Natera (NASDAQ:NTRA), a company specializing in genetic testing and diagnostics, with a positive outlook. The firm assigned a Buy rating to the stock, accompanied by a price target of $142.00.
Jefferies highlighted Natera's dominant position in the market, its consistent operational execution, and the potential for upside in the company's 2024 guidance due to improvements in average selling prices (ASP) and additional non-invasive prenatal testing (NIPT) guideline inclusions.
Natera's market share and product performance were key factors in the firm's assessment. The company's minimal residual disease (MRD) testing, which serves a substantial total addressable market (TAM) estimated at $20 billion, was particularly noted. Signatera, Natera's MRD test, was recognized for its early entry into the market and adoption by over 40% of oncologists in the fourth quarter of 2023.
The analyst from Jefferies expressed confidence in Signatera's future, citing its potential for inclusion in upcoming medical guidelines. The test's approach, which is informed by tumor-specific data, has shown to be superior, according to the data presented by the firm. This advantage positions Natera favorably for future growth and market penetration.
Natera's strategic position within the genetic testing industry is bolstered by these factors, as the firm anticipates further adoption and recognition of the company's offerings. With the analyst's endorsement of a Buy rating and a substantial price target, Natera's stock outlook is set with optimistic expectations for performance and growth.
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